Trade and Commercial Law Assessment - Honduras - Economic ...

TRADE AND COMMERCIAL LAW ASSESSMENT DECEMBER 2004
HONDURAS
developing
countries within the Agreement on Subsidies and Countervailing Measures (SCM
Agreement).
Customs
officers specially trained to perform only zone oversight functions are onsite at each
zone lo cation. These officers, who number between 80 and 100, work from 8 a.m. to 4 p.m.
and
are available for overtime services at extra pay, performing physical verification of
all loading
operations and selecting imports
to oversee discharge.. The zone operator reimburses Customs
for all costs associated
with these positions.
♦ Private sector involvement in the operation of the free zones has resulted in competitive
regional facilities, offering high-quality service and modern infrastructure. The operators
of the zones aggressively market their services to potential users and receive good
support from the government that recognizes the importance of zone activity to the
national economy.
♦ Costs are competitive, when the full range of services is taken into account. Cogeneration
of electricity that will reduce energy costs by 40 percent is being developed within the
major zones.
♦ Zone operations are continuing to expand, and space is available to meet the needs of the
users. Between 50 percent and 60 percent of current national construction efforts involve
expansion
of these sites and development of the required infrastructure.
♦ Zone operators are attempting to provide a full service package to the users by identifying
users’ needs for raw material and producing
those products within the zone. If an item
such as a type of woven fabric or button is needed in the production of a finished product,
the operator will attempt to locate a local firm to manufacture it within the zone.
Currently, U.S. inputs constitute about 67 percent of the finished exported product.
♦
♦ The Ministry of Finance and the Central Bank audit zones. These audits occur less than
once a year. Operators and users must file monthly and bimonthly reports to each of the
institutions. This function improves security and control.
♦
1) Zone Operations That Support Trade Facilitation
♦ Diversification into areas other than textile apparel has recently started; currently, the
main additional area is parts for the automotive industry.
Zones are well secured, with little or no leakage. At the largest facilities, there have only
been 1–2 cases in the past 10–15 years of stolen merchandise.
The Honduran Free Zone Association, Asociación de Zonas Francas de Honduras
(AZAFRANCA), is an active advocate for trade
facilitation. AZAFRANCA represents 12
of the largest operators and is active in promoting the services and growth of the sector.
2) Zone Issues to Address
♦ The zones are not linked to the Customs automated operating system. This disconnect
delays shipments. Although the operators have been promised this linkage by the end of
2004, such deadlines have not been met as of the date of this
assessment.
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